project

A Focus on Then and Now

Grappone Automotive Group

Research Subject Selection

I chose the Grappone Automotive Group to report on because of my prior experience with the company. As this semester progressed through the chapters in our text, I often thought of Grappone’s as the example in the subject matter. This report will cover two specific initiatives. The first, from 2003 – 2004, when their Honda store grew to the next level requiring a complete review and some rewriting of its policies and procedures. The second is a look in on the company today to see how they are structured going into their 4th generation of family ownership.

The first section of this report is based on my personal experience in the company as I was selected as a process improvement manager during a transitional period for their Honda franchise. The follow up information on today’s Grappone Automotive Group comes from some of their online initiatives posted through Facebook, their company website, and online publications such as the New Hampshire Business Review. I was also fortunate enough to speak with one of the company’s corporate directors recently. She was very helpful in pointing me in the right direction, not only now, but when I was a Grappone employee as well. It was a pleasure to reconnect with my good friend.

The Company Founding and Brief History

The Grappone Automotive Group takes great pride in their long standing tradition of taking care of its customers. The company started in 1924 when Rocco Grappone and his wife Emmanuella bought a Gulf station in Concord, NH. The garage was initially bought to supplement the family income while Rocco worked at a local quarry. Taking care of their customers and their employees, Grappone’s started to grow. Even as the “Great Depression” came in 1929, Grappone’s had grown to the point of offering and servicing new Pontiac automobiles. By 1939, Rocco had built on his customer service and added Desoto and Plymouth franchises. A few years later during the height of the war effort a shortage of rubber created a need for tires. Rocco established a tire retread business to take care of his customers. In 1944 the company grew again with the addition of John Deere.

The company was eventually turned over to his son John who expanded the Pontiac franchise and added AMC/Jeep as well as Ford. Robert and Allen joined their father in the ever growing business. Between the years 1968 – 1974 Grappone acquired Toyota, Honda, Subaru, and Mazda. Growth continued through the 80’s and 90’s and John’s son Robert became sole owner from 1994 – 2004. The common thread throughout the years was taking care of people, both customers as well as employees (http://grapponenews.com/grappone-automotive-group/).

A View from Within

In 2003, I was fortunate enough to be hired by the Grappone Automotive Group as a sales person at their Honda Store. The Grappone Automotive Group was the largest automobile company I had ever worked for. At that point, I had been affiliated with the automotive industry for nearly fifteen years. When I first applied, I went to the Honda store itself but was sent to their Human Resources Department to do a formal application. They were very thorough in their interviewing process which even included a personality test. References were checked and verified and a drug test was required. I was personally recommended for the job by the General Sales Manager of the Honda store, but no one was exempt from scrutiny.

I was strictly a salesperson for the first couple of months as was then approached and asked if I would be a mentor for the Honda store. I had prior management experience in the industry and I expressed interest in being a manager for the Grappone Automotive Group. This was how my development process started. The Honda franchise was bursting at the seams selling 150 to 175 new and used vehicles month in and month out. Expansion was in the works as Honda had physically out grown the building it was in. Grappone’s was slated to break ground on a brand new state of the art facility to be built across the street.

Employing a Cross-Functional Team

Construction was to be completed in 2004. At the same time, American Honda Motor Company, the franchisor, had an initiative called E.X.C.E.L.L. (Exceeding Customer Expectation Levels for Life.) Honda was requiring that all their dealers become Certified EXCELL dealers. Achieving this certification level would be the last hurdle for the Grappone Company to overcome to be a “Presidential Award” winning Honda dealer. The Grappone Company, along with American Honda Motor Company set the clock in motion so that the move to the new facility, the EXCELL Certification, and the pending Presidential Award were all coordinated to be completed at nearly the same time.

For this to occur, several steps needed to take place. The EXCELL initiative was centered around customer service and sales satisfaction. It was measured by customer responses to a sales or service generated surveys. Any survey that came through with a score of less than 5 out of 5 in any category created an “Opportunity Bulletin.” These Opportunity Bulletins required a specific response tailored to exceed the customer’s expectations. The volume of surveys from month to month provided a base line to measure from and would indicate trends in specific areas.

As trends were identified they were brought to the attention of the EXCELL team in a weekly action meeting. The EXCELL team was put together by a facilitator and consisted of a cross-functional group of managers and staff combined to find problems, come up with solutions, confirm the solution addressed the problem, and then ultimately train the rest of the staff on how to avoid having that specific problem in the first place. My job during this time was the facilitator. The Grappone Company and American Honda Motor Company invested weeks of training on the EXCELL initiative. Classes in Continuous Improvement Management and Process Improvement were given all over the country as Honda and Acura were enacting this initiative.

As Facilitator, I reviewed survey scores, identified trends, set up the weekly agenda and lead the weekly action meeting. Our weekly meeting was kept to 45 minutes or less as we stuck to our agenda. The weekly agenda would consist of: revisiting and addressing previous concerns; tracking and controlling individual action teams’ progress; and creating new action plans and teams to address new problems. Our EXCELL team usually had 8 – 12 members that consisted of myself, the Fixed Operations Director, the Service Manager, the Parts Manager, the General Sales Manager, a Finance Manager, a CSM, a Service Advisor, a Technician, a Salesman, and a Reconditioning Tech. It was not uncommon for Bob Grappone or his CFO to attend the meetings.

These meetings all had one purpose… to improve customer satisfaction. We addressed any issue that had a tie in to customer satisfaction from a baby changing station in the bathroom to having a tube of matching touch-up paint available to every vehicle delivered. The meetings were often times a source of enlightenment as everyone was equal at these meetings and no idea was discarded without it being looked at. The purpose of the cross-functional EXCELL team was to mix people with different experiences and abilities to see virtually every point of view at the dealership. Some of our best ideas came from the least likely of sources. Bob Grappone empowered that team to do what it had to do to get the job done. We accomplished our end goal and became EXCELL certified, Grappone Honda became a Presidential Award winner, and we moved into the new facility on time with our new policies and procedures in place.

That was Then; This is Now

This report and my current line of work has caused me to go back and look at the Grappone Automotive Group. Today, Robert Grappone is still the primary owner and is now joined by the family’s fourth generation owners, his daughter Amanda and his son Greg. Amanda is currently the acting Sales Director and is very hands on in day to day operations. Their staff of nearly 300 sells and services Ford, Honda, Hyundai, Equus, Mazda, Toyota and Scion vehicles (Review).

The President and CEO is Larry Haynes. Larry was promoted from the CFO position several years ago. The company has four directors as their senior leadership team. There is a Fixed Operations Director, an Accounting and IT Director, an HR Director, and a Director of Corporate Potential. Grappone’s is staffed by nearly 288 full time employees with the number increasing to over 300 with part time employees. There are several brands at Grappone’s that are run through four different facilities. Each facility is run by a General Sales Manager, a Service Manager, and a Part Manager.

Grappone’s hiring practices are still similar to when I was hired in 2003. There are multiple interviews before anyone starts. Their reputation is paramount as much goodwill is invested into the community as well as their customers. There is very little turn over at Grappone’s and you will find several staff members with 20 years or more of service to the company. Grappone’s promotes from within and does a remarkable job in developing its staff.

During this research I learned about the Director of Corporate Potential. I was intrigued to see how much this position emulates what is taught in Contemporary Management courses today. According to the posting for the job position, the Director of Corporate Potential is required to have the following qualifications:

•An advanced degree in either education, psychology, organizational theory, or other related field of study •A strong background in corporate training/coaching/leadership development •Proficient in assessing job fit across a variety of positions •Demonstrated success in strategic planning in mid- to large-sized companies with a focus on: company-defined values integration; long-term succession planning; identifying and developing the potential of a team •Intimate understanding of a retail operating environment •An approach to working with individuals which celebrates one's strengths, and prizes job fit as being key to an organization's overall success •The ability to be flexible in training/coaching in a variety of settings, including in the workplace as well as at offsite retreats

In January of 2012 Grappone’s added Mark Brown to its senior leadership team as the Director of Corporate Potential. According to a profile of Mark, he is adept at working with people. In his current role he helps the Grappone Automotive team members listen actively, learn daily, and love what they do. He specializes in: Executive/Leadership/Team Development, Strategic Planning, Strategic Performance Improvement, Marketing, Risk Assessment, Training Design and Delivery, Sales Training Design and Delivery, Marketing, Conceptual Thinking/Brainstorming, 1-on-1 & Group Coaching and Mentoring, Revenue Management, Facilitative Leadership and Advocacy, Personnel Recruitment, Training, and Motivation, Oral and Written Communications, Mediation/Conflict Resolution, Organizational Startup Procedures (Brown)

Mark’s insight has made him a popular speaker in and around Concord, NH. In March of this year he spoke about Emotional Intelligence for the Human Resources Association of Greater Concord. In his speech, The Human Side of Supervising, Mark addressed the topic: Why emotional Intelligence is a key management competency and what you can do to develop it. (Brown, http://hragc.shrm.org/news/2013/02/business-partners-health-wellness-work-welcomes-us-attend) Also in March, Mark was invited to speak at the Center for Health Promotion as part of the Concord Hospital Trust Business Partners in Health series called, “Wellness at Work.”

Margaret Fletcher of the Center for Health Promotion was quoted in her invitation, “I am feeling particularly strong about the approach that Grappone Automotive will be describing at this forum. Grappone is breaking workplace culture ground, by making it possible for their employees to consider their own personal meaning through work, and by creating a climate of respect and mastery that unlocks each individual’s potential. To my mind, this is an essential wellness “upgrade” we’ll all be facing, to survive and even thrive through our life’s work (Fletcher).”

I feel Grappone Automotive Group is an exceptional company. Their management systems are flexible, yet sound. They adapt with the changing times and still stay true to their values. From Rocco back in 1924 through 2013 with Amanda at the helm, Grappone’s has been a leader in taking care of both customers as well as their staff. They continue to break the mold of the traditional automobile dealership and make it their own brand. I learned many lessons working at Grappone’s. I would recommend them to both customers and potential staff alike.

Works Cited Brown, Mark. http://hragc.shrm.org/news/2013/02/business-partners-health-wellness-work-welcomes-us-attend. March 2013. —. http://www.linkedin.com/profile/pub/mark-brown/4/310/b72. 5 May 2013. Fletcher, Margaret. http://grapponenews.com/2013/03/06/wellness-work/. March 2013. http://grapponenews.com/grappone-automotive-group/. May 2013. May 2013. Review, NH Business. http://www.nhbr.com/April-19-2013/Grappone-Automotive-Group-goes-green/. 19 April 2013.